VEON and MegaFon complete divestiture of Euroset joint venture
OREANDA-NEWS. VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services headquartered in Amsterdam and serving more than 240 million customers, and PJSC “MegaFon” (LSE: MFON), a leading Russian provider of integrated digital services ("MegaFon"), announced today the completion of the transaction to end their Euroset joint venture.
Pursuant to terms of the transaction, PJSC VimpelCom, the Russian subsidiary of VEON, acquired half of Euroset’s retail stores and pays to MegaFon RUB 1.25 billion (approximately USD 20 million), subject to certain adjustments, while MegaFon acquired PJSC VimpelCom’s 50% interest in Euroset, resulting in MegaFon now owning 100% of Euroset with all of its debt and liabilities. As a result of the transaction, PJSC VimpelCom has fully disposed of its interest in Euroset with all of its rights and obligations. Prior to the transaction, Euroset, Russia’s largest mobile and electronics retail network, was co-owned by PJSC VimpelCom and MegaFon.
Vasyl Latsanych, Chief Executive Officer of PJSC VimpelCom, commented: “Completion of this important transaction marks a new stage in the development of the Russian telecom distribution channel, doubling PJSC VimpelCom’s retail network in Russia. Furthermore, it now allows us to commence the planned nationwide integration of the stores under our single brand “Beeline” in line with our previously announced mono-brand strategy. We are confident that our strategy will provide existing and new customers with leading customer experience and top-class services.”
VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and internet services, with an ambition to lead the personal internet revolution for over 240 million customers it currently serves, and many others in the years to come.